On Monday, the State Government of Victoria announced several proposed new rental rules, which aim to strengthen the minimum rental standards provided for under the Residential Tenancies Regulations 2021 and the Residential Tenancies (Rooming House Standards) Regulations 2023, both made under the Residential Tenancies Act 1997.
The proposed requirements have the potential to force landlords to install thousands of dollars’ worth of upgrades to meet the new standards which include ceiling insulation, draught proofing, hot water efficiency and cooling.
The changes would be introduced from October next year. Appliances would not need to be upgraded until existing ones reached the end of their lives, and insulation and draught-proofing would need to be upgraded at the start of a new lease.
State Consumer Affairs Minister Gabrielle Williams said these requirements would drive down power bills and save renters money. While the Energy Minister, Lily D’Ambrosio said new heating and cooling systems could save renters $215 a year, while the lower-cost option to upgrade a hot water system would save tenants about $113 a year. The government said the total savings could be $567.
Article from Herald Sun – Tuesday Jun 4, 2024
The changes are not likely to be heavily imposing on landlords and the costs are unlikely to be passed on to tenants. Please see a summary of the proposed minimum standards being introduced in October next year below.
| Standard | Trigger for compliance |
|---|---|
| Blind cord safety anchor | By 30 October 2025. |
| Ceiling insulation | From 30 October 2025, where:
|
| Cooling | From 30 October 2025:
From 30 October 2027, all rental properties are to have a fixed cooling system. |
| Draughtproofing | From 30 October 2025, where there is a new rental agreement or conversion from fixed term to periodic rental agreement. |
| Heating (residential properties) | From 30 October 2025, at the end of life of the existing fixed heating system. |
| Heating (rooming houses) |
|
| Hot water | From 30 October 2025, at the end of life of the existing hot water system. |
| Shower head | From 30 October 2025, where there is a new rental agreement or conversion from fixed term to periodic rental agreement. |
Source: Victorian Government
Consultations close in July 2024 before new standards are determined in October 2024. When we receive further information on the proposed changes in the coming months, we will inform you accordingly.
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Disclaimer
This information and the contents of this publication, current as at the date of publication, is general in nature to offer assistance to Cornwalls’ clients, prospective clients and stakeholders, and is for reference purposes only. It does not constitute legal or financial advice. If you are concerned about any topic covered, we recommend that you seek your own specific legal and financial advice before taking any action.